What are Venture Funds?

Venture funds are organizations thatinvest their financial capital in projects or some enterprises at the initial stage of their development and formation. It is important to note that not every such kind of investment in the future is profitable. According to statistics, about 80% of all investments in practice are unprofitable. However, the remaining 20% ​​are so profitable that they completely cover the initial costs and bring a significant profit afterwards.

Venture capital funds. History

This type of business was finally finallywas formed in the US in the 1980s. Such innovations were primarily related to scientific and technological progress, which at that time was dominant throughout the world, as well as with the rapid development of the electronics industry. By the mid-1980s, there were about 650 investment organizations of this type in the United States of America. Moreover, the governments of some states were looking for an opportunity to help newly formed firms and began to join the ranks of venture capitalists. According to experts, in 1987 venture funds underwent a peak of their funding. The total investment was about $ 4.5 billion.

Venture funds today

At the moment, the so-called "venturefinancing "is increasingly resorted to by small projects called" startup. "Most often, these are small companies whose staff does not exceed sometimes 10 people.They come up with an idea and go with it to venture funds in the country.The specialists then decide and approve the application or, on the contrary, they reject it.In the first case, the fund begins to fully finance the project.The market success of such small companies is primarily their rapid growth.Some time a small startup can seize for example, if the original idea was related to the latest technologies, on the other hand, as mentioned above, only a few such companies survive on the market.With the most famous and at the same time successful projects specialists call Apple, Xerox "And" Intel. "Judging by the success of these projects, you can think about the fact that this kind of practice is really appropriate.

Venture capital of Russia

As for our country, the situation here is notso optimistic. The thing is that Russian venture funds relatively recently started their work (in comparison with America). It is important to note that such experience for our state is new, and only a few are willing to risk their investments. Despite the disappointing forecasts of specialists, entrepreneurs still try to invest their finances in start-ups. Probably, in the near future this industry will get a new round of development in our country.

Runa Capital

Runa Capital is the most popular for the presentthe moment is the Russian venture fund. Its founder Sergey Belousov has already managed to bring to the world market such brands as Rolsen and Parallels. It is believed that this company has become popular and is quite successful only thanks to a strong marketing component. The fund invests about $ 10 million, but its share subsequently ranges from 20 to 40%.

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